Nigerian Minister of State of Petroleum Resources (Gas) to Enforce Investment Opportunities at African Energy Week (AEW)

Nigeria’s Minister of State for Petroleum Resources (Gas) Ekperikpe Ekpo will speak at the African Energy Week (AEW): Invest in African Energy conference this November, outlining opportunities for foreign investment in the country’s gas value chain.

With plans to increase production to 5.5 billion cubic feet per day by 2030, Nigeria is inviting project developers, technology providers and financiers to capitalize on the country’s 200 trillion cubic feet of proven gas resources. AEW 2024 will facilitate this engagement while providing insight into ongoing projects, planned developments and strategies for scaling-up regional energy security through Nigerian natural gas.

AEW is the platform of choice for project operators, financiers, technology providers and government, and has emerged as the official place to sign deals in African energy. Visit www.AECWeek.com for more information about this exciting event.

Various developments have taken off in Nigeria in line with 2030 production targets. Supermajor TotalEnergies started production at the Akpo West field in February 2024, for example. The project added 14,000 barrels of condensate per day and is expected to produce an additional four million cubic meters of gas by 2028. A shareholder’s agreement was signed for the development of a 1.8 billion tons per annum FLNG project – the country’s first floating facility – in December 2023, with FID expected this year while energy major Shell plans to start production at the H1 and HA shallow-water development by 2027 and 2029. Shell is also planning to extend the life of the Bonga FPSO by 15 years to handle increased production.

Upstream investments are integral for production increases, and Nigeria is being bullish in its efforts to attract foreign investment towards burgeoning gas projects. The country plans to launch a licensing round in 2024 to bolster investment in upstream gas and has also issued a called for investments in this area. Recently, Shell made an announcement that it would invest $1 billion over the next ten years to develop Nigerian gas resources while American multinational Chevron plans to invest in seismic acquisition in several deepwater blocks. Expansion works are also underway at the multinational’s Agbami field project.  AEW 2024 will showcase available blocks, connecting potential investors and E&P players to Nigeria’s deepwater opportunities.

Meanwhile, the government is set to introduce incentives to attract oil and gas investments, including replacing signature bonuses; addressing the issuing of licenses; low contract costs and eliminating obstacles in relation to production agreements. The implementation of the Petroleum Industry Act in 2021 – a legal, governance, regulatory and fiscal framework for the Nigerian petroleum sector – further improved the business environment in Nigeria, not only restoring investor confidence in the market but laying the foundation for long-term investments to be made. AEW 2024 will provide insight into investment-focused policy reform.   

Additionally, Nigeria is developing its downstream industry to position itself as a regional hub for petroleum products. The country is committed to developing regional pipeline infrastructure, with the construction of the two billion cubic feet per day Ajaokuta-Kaduna-Kano pipeline slated for completion mid-2024. Government also held a meeting in January 2024 to expedite the construction of the 3.3 bcm per day Nigeria-Morocco pipeline project.

Regarding processing infrastructure, Shell announced FID for the construction of gas supply facility in February 2024, which will serve as feedstock for the Dangote Fertilizer and Petrochemical plant. The contract covers a period of ten years and will see 100 million standard cubic feet of gas delivered to the facility. Nigeria and Saudi Arabia launched the National Human Capacity Training Program for the Adoption of Liquefied Petroleum Gas (LPG) this month while construction of the seventh train of the Nigeria LNG project is making progress, reaching 53% completion at the end of 2023. As the country moves to monetize its gas resources through associated LNG and LPG infrastructure, AEW 2024 will connect potential investors to project development opportunities.

“Through the development of natural gas, Africa can usher in a new era of industrialization, and Nigeria’s resources will be critical for advancing economic growth and making energy poverty history by 2030. Nigeria is just starting to realize the full potential of its gas economy and strategic investment will not only unlock high returns for financiers but transform the country into an energy powerhouse,” states NJ Ayuk, Executive Chairman of the African Energy Chamber.

AEW 2024 takes place under a mandate to make energy poverty history by 2030, and promotes investment across the entire African energy value chain. The conference offers a diverse lineup of panel discussions, presentations, investor-briefings and project profiles, all of which aim to connect capital and technology with African projects. Visit www.AECWeek.com to secure your place at the largest energy event to take place on the continent.

Distributed by APO Group on behalf of African Energy Chamber.